I think it means you own the stock but why would it be termed 'long'?
2006-07-26 08:11:25 · 6 answers · asked by Veccster 2 in Business & Finance ➔ Investing
Buying long:
You buy the stock (and own it) with the expectation it will rise in price, so you can sell the shares at a profit.
(Shorting a stock is the opposite - you borrow shares from your broker and sell them, and hope the price falls. Then you buy cheaper shares on the market and repay your broker with the newly-acquired shares to settle the transaction. Your profit is the difference between the sales price of the original borrowed shares, and your purchase price of the repaid shares. Not for amateurs - you can lose a lot money if the price doesn't fall in the timeframe you need to repay your broker.)
2006-07-26 08:22:03 · answer #1 · answered by Tom-SJ 6 · 1⤊ 1⤋
If you own a car, you are "long" a car. If you borrowed money to buy the car, you are "leveraged," meaning, if you crash the car w/o insurance, you will end up owing more on the car than you paid with cash up front.
This is the same as buying stock on margin. You can leverage your postion up to 2:1, buying twice as much stock with the same amount of money. That's called 50% margin.
With an investment though, you are long if you are betting on the price going up, and you are short if you are betting on the price going down. You really don't need to worry about the mechanics of how that's done, because your broker takes care of the details.
So now, if someone asks you if you have any investments, you can say sure, "I'm short 100 shares Yahoo, and I'm long 100 shares of Google." Now, you're uptown, really sophisticated.
2006-07-26 08:36:22 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
Yes, it does mean that you own the stock. This is the opposite of being "short" the stock. Which means that you've "borrowed" the stock from the broker/dealer and sold it on the open market. At some point you will have to "buy" the borrowed stock to settle up. The hope is that you "buy" it for less than you sold it previously.
2006-07-26 08:17:23 · answer #3 · answered by Mike 1 · 0⤊ 0⤋
The CORRECT answer to your question is - To be LONG on a stock means you will hold onto it LONG TERM. Investors who say they are LONG on a stock, believe that the price will continue to go up in the LONG term, despite any short term setbacks.
2006-07-26 18:59:29 · answer #4 · answered by marky m 2 · 0⤊ 0⤋
I'll make it simple. It means you own the stock and are rooting for the price to go up.
2006-07-26 14:27:44 · answer #5 · answered by kako 6 · 0⤊ 0⤋
thanks everyone!! very informative!
2014-03-29 08:58:21 · answer #6 · answered by thomas 1 · 0⤊ 0⤋